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On the role of small models in macrodynamics

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  • Turnovsky, Stephen J.

Abstract

This paper focuses on the role of small models in macrodynamics. It discusses the insights that I believe these models offer and the extent to which they can address some of the complex issues, such as heterogeneity and interactions among agents that are receiving increasing attention in the literature. I comment on what I view to be the most productive role for numerical simulations, and finally offer some brief comments in defense of the state of modern macroeconomic theory in light of the criticism it has received as a result of the recent financial crisis.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Dynamics and Control.

Volume (Year): 35 (2011)
Issue (Month): 9 (September)
Pages: 1605-1613

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Handle: RePEc:eee:dyncon:v:35:y:2011:i:9:p:1605-1613

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Web page: http://www.elsevier.com/locate/jedc

Related research

Keywords: Small models Macrodynamics;

References

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Cited by:
  1. Ligthart, J.E. & Meijden, G.C. van der, 2011. "The Dynamics of Revenue-Neutral Trade Liberalization," Discussion Paper 2011-142, Tilburg University, Center for Economic Research.
  2. Engwerda, J.C., 2012. "Prospects of Tools from Differential Games in the Study Of Macroeconomics of Climate Change," Discussion Paper 2012-045, Tilburg University, Center for Economic Research.

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